Further to twoheads query, please can you confirm that the new bonus accrual feature only applies to the 'Tolerance Period' and ceases to apply when the loan is in default as implied in the FAQ (https://support.lendy.co.uk/hc/en-us/articles/115004162069-Can-you-tell-me-more-about-the-new-bonus-accrual-scheme-). Thanks.
nick: Are you suggesting that you think bonus interest accrues through the Tolerance period until it reaches 3% when the loan is reclassified DEF -- and then it evaporates/disappears?
i wonder how many of those "entrepreneurial businesses" do it with their customer's money? I know, great idea, don't know if it'll work, but it doesn't matter, it's only our customer's money we're risking!
Does it really make any difference whether these entrepreneurs are doing it with customers' money or with venture capitalists' money? Either way, it isn't their money.
It's clear. But why is it so important for you not to help someone withdraw his/her funds? You may appear in the same situation tomorrow. I always prefer SM, just for the reason you don't.
Firstly: I don't understand your logic in the comment which I have highlighted. I explained that my reason for preferring the PM is to help the platform and the development. Your reason for preferring the SM cannot be the same for it only helps those trying to sell on the SM.
Secondly: If everyone wanting a piece of DFL005 decided to buy from the SM (£316k available) instead of the latest tranche on the PM (£358k available) then it would could seriously delay filling the tranche which could subsequently delay the development. The DFL tranches must be funded somehow. This is for the long term good of the development and also those trying to sell on the SM.
My apologies for coming into this thread late... IMHO both positions seem reasonable in isolation, but I think they are related and affect each other because of the impact on investor confidence and willingness to invest further.
If new money all goes into the new tranches, and the SM stagnates and parts are difficult to sell, then ISTM that will cause some would-be investors to decide not to invest because they can't see what they think is a reasonable exit possibility. That could cause a downward spiral of support.
If OTOH all new money goes into buying SM parts, then while that might appear to make it harder to fund the new tranches, the reduced SM queue could encourage more people to invest because they might feel that they could exit without a lot of difficulty if they should want to.
I should add that I don't feel investors should invest with the intention of a quick exit. But the availability of an exit route will encourage some people to invest more even if they have no intention of exiting. Most of those investors probably wouldn't actually try to exit, but a small SM queue would boost confidence and willingness to invest -- potentially creating a positive spiral of support.
i wonder how long it will take before FS mention the court case that the borrower was going to receive a payout to be able to pay this loan! Does anyone know why no work has been done on this site for the last 6 months?
ISTM that FS will mention the court case only if the borrower actually receives a payout. And the idea that might happen any time soon probably would be good cause for the residents of ilmoro's hat to spring into action!
As for who might know why so little progress had been made on the site in the last six months, I'm afraid the only likely candidate is the borrower. ISTM that the updates posted by FS make it clear that they had no clue what actually was happening at the site -- I'm presuming they weren't deliberately lying to us -- so it doesn't seem likely that they would know the reasons for the lack of progress.
reading between the lines, and i'm no expert on this, but I don't think the tenancy is legal... someone might just have dropped on their feet.
It might be illegal, but it might also take until after the tenancy is over before any legal battle was concluded -- so the tenant might have been in place for 12 months and then moved out by the time the case is decided.
It says that the renew button should be faded if it is intending to renew - it isn't. Wait and see i guess
It will become faded only when the renewal is within hour(s) of happening. (I haven't watched carefully, but investors have until quite close to the renewal time before their decision becomes irrevocable.)
Most of the time, an update appears saying that FS have received funds to cover what's owed, and the renewal date is imminenet -- and often specified in the update.
I received a go-live notice for Tranche 3 of this loan today, and it looks like it's being released without the cashback offer.
It will be interesting to see if it's fully funded when it goes live. With nearly £200k of non-cashback parts of this loan on the SM, I'd be surprised if there's enough appetite for another £380k of those, but I suppose it all depends on what levels of pre-funding investors have set.
I wonder how many people thought that, since T2 came with cashback, further tranches would as well and will be surprised when they're allocated parts that don't come with cashback.
Paul , Lendy Support : The above implies that loans 'sold' -- did you mean 'repaid'? -- after the end of the Tolerance Period, i.e. a DEF loan, are treated differently. If so, how? (I have seen nothing in the information published so far that addresses that situation.)
mikes1531 , I believe that Lendy are going to disallow SM trading in DEF loans. I expect this is also being rolled out on August 1st.
Thus their statement makes reasonable sense.
Bonuses only apply to overdue loans and, of the overdue loans, only those within the tolerance period will be tradable, not the DEFs.
OK. So Lendy were talking about loan parts being sold, and their statement now makes sense to me.
I still have the question, though, of whether bonus interest continues to accrue on DEF loans for whoever is stuck holding the unsaleable parts. It seemed clear that it would accrue when the bonus accrual column was added to the Default Loans table. However, now that column has disappeared, the question has to be asked of Paul and/or Lendy Support.
Unless, of course, they've already answered the question and someone here can point me to the evidence of that.
I wouldn't expect to hear anything from FS until at least a week after the expected repayment date. At that point, investors could start asking for an update, and FS likely would tell us what they know.
Bonus accrual Scheme details from Lendy Support site as at 13:07 19/07/17:
For example, if a loan is sold during the Tolerance Period, the new lender receives the bonus if they continue to hold the loan part until the loan is repaid.
Paul, Lendy Support: The above implies that loans 'sold' -- did you mean 'repaid'? -- after the end of the Tolerance Period, i.e. a DEF loan, are treated differently. If so, how? (I have seen nothing in the information published so far that addresses that situation.)
I have identical amounts in the CB DFL19 and no CB 28 (1 day older) both are accruing at the same daily rate. I have been downloading the transactions daily to discover what would happen when the 0.5% "bonus" kicked in and so far - nothing. I'll compare when the interest run comes through and can report back.
elsee : Inasmuch as the bonus interest doesn't start accruing until the remaining term reaches -30 days, and these two loans are currently at +259 days and +335 days, you're going to have to wait about a year to see any bonus interest accrue.
And IMHO there's a high probability that Lendy will have changed the rules by then!
Last Edit: Jul 20, 2017 10:37:41 GMT by mikes1531: Edited to fix a typo.